GoM recommends hike in sugar MSP to Rs 33/kg; asks Food Minister to move cabinet note

A group of ministers, headed by Home Minister Amit Shah, on Wednesday recommended increasing the minimum selling price (MSP) of sugar by Rs 2 to 33 per kg to ensure mills clear the pending cane arrears of around Rs 20,000 crore at the earliest.

Finance Minister Nirmala Sitharaman, Food Minister Ram Vilas Paswan, Agriculture Minister Narendra Singh Tomar and Commerce Minister Piyush Goyal were present in the meeting.

According to the official data, mills have purchased sugarcane of around Rs 72,000 crore from farmers during 2019-20 season (October-September). Of that, around Rs 20,000 crore of arrears are yet to be paid to farmersArrears comprise payments to be made on the basis of Fair and Remunerative Price (FRP) fixed by the Centre, and State Advisory Price (SAP) determined by the stat

The GoM took stock of the pending sugarcane dues to be paid by sugar mills which stand at around Rs 20,000 crore so far in the current 2019-20 season (October-September) and ways to ensure mills clear this at the earliest.

A task force constituted by Niti Aayog on sugarcane and sugar industry had also recommended a one-time increase of Rs 2 per kg in MSP of sugar.

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